U.S. hits Chinese and Russian firms over North Korea sanctions breach

FILE PHOTO: A North Korean flag flies on a mast at the Permanent Mission of North Korea in Geneva October 2, 2014. REUTERS/Denis Balibouse/File Photo

WASHINGTON (Reuters) - The United States imposed sanctions on a Russian port service agency and Chinese firms for aiding North Korean ships and selling alcohol and tobacco to Pyongyang in breach of U.S. sanctions.

The U.S. Treasury said in a statement on Wednesday that China-based Dalian Sun Moon Star International Logistics Trading Co. Ltd and its Singapore-based affiliate SINSMS Pte. Ltd had netted more than $1 billion (£787.7 million) a year by exporting alcohol and cigarette products to North Korea.